Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1887-10-21
The Inter state Commerce Decision.

commission in the cases heard at Rut-
land last month, were given, when the
decision was made public, the full text of
the opinion, which lies before us,
shows that the Geographic abstract of it
published at the time was imperfect and
in some particulars incorrect. The opin-
ion is from the pen of Judge Cooley,
chairman of the commission, and is Il
model OF compact statement and clear
logic.
After extended quotations from the an
swers made by the defendants, to the petit
tions of the Boston and Albany road and
of the Vermont State Grange, the opin-
ion says with reference to the Boston and
Albany petition
The sole grievance of the petitioner is
that the defendant roads accept traffic
from Boston to western points at lower
rates than are made by petitioner and its
connections and the legitimate inference
must be that the purpose of the proceed
ings is to compel the putting up of those
rates. But i'll that purpose the petitioner
can certainly expect no aid from this com
mission. The defendant companies have
the egal right to make the low through
rates, and their competitors cannot re-
strain them.
Proceeding to the more important com
OIduEt,
says.
By some of the defendants it is claimed
that the case is not brought within the
4th section of the act, because the tariff
for the long haul traffic is not made by
the de eud1nts, singly or collectively, but
by the National Despatch line which oper-
ates over their roads The National De
spatch line is one of the many fast freight
lines of the country, but is perhaps il
some respects peculiar. 1t is neither a
corporation nor an association of persons
1t exists by virtue of no formal agree
ment or writing One witness speaks of
it as name merely another as trade
mark. 1t is nevertheless, so far as the
public dealing with it are concerned, an
actually of much Importance, for 1t not
only transacts large business but takes
all the traffic passing over the Central
Vermont destined to or coming from
points beyond St. Adams. 1t has for gen
eral manager Mr.. John Porteous, who
owes his Office or position to the president
of the Central Vermont railroad cOmpa-
ny, whose power to appoint does not APP
pear. Mr.. Porteous appoints some assist
ants, but in general the railroad agents
are agents of the National Despatch line
also. The reason for establishing the line
originally was that the roads were great
ly deficient in rolling stock, and a car
company was formed to loan them cars,
and this line called INTO existence to oper-
ate the cars. The roads pay mileage for
the use of the cars. The earnings of the
line less the expenses are divided among
the roads in agreed proportions. Mr.. Por-
teous makes the tariffs tor traffic taken
by the line. The long-haul traffic rates
mentioned in the complaints are rates
made by him, the several defendants tax
ing no part in them.
These are the facts as they appear from
the proofs. We deem it unnecessary to
comment upon them any further than is
needful to draw a legal conclusion The
responsibility of the defendant carriers
for the long-haul rates is unquestionable.
They did not through their own officers
fix them, but they one and all acquiesced
in the designation of a person to be al
lowed to fix them, they permit the bust
ness to be done over their roads respect
lively at the rates named, and they accept
their several proportions. 1t would be dltli-
cult to imagine method whereby they
would become bound more conclusively,
for Mr.. Porteous is agent for all in max
ing the rates, and they all acquiesce i'll
what he does, so that they would be
II, bound even If he had acted at first with
out full authority. The arrangement as
it exists in fact, though it be only name
or a trade mark, makes the National De-
spatch line or lis manager representing 1t,
the agent for such roads as the line Is
operated over. Its rates are their rates
for the business done, and at their peril
this commission, and that in other partic-
ulars the law is obeYed by it.
In reference to the justification set up
by the Central Vermont managers for
their excessive charges on short haul traf-
tlc, viz that the low long haul rates were
necessity of the situation, and that the
higher rates for short haul traffic were
the lowest that could be afforded, the
opinion says
The Central Vermont is the successor
to the Vermont Central and the Vermont
and Canada roads, constructed in 1919 for
local traffic and Which became bankrupt
and sunk all their capital. There was
long receivership, at the end of which Il
reorganization was effected under the
name of the Central Vermont with a
bonded debt of seven million dollars. The
company as reorganized has paid the in
terest on it's debt but no dividends the
surplus earnings being all expended in
improvements. The road is IN fine state
OF repair and efficiency, well supplied
with motive power, but still making use
of leased cars through the National Des-
patch line. The line of road is through a
sparsely populated country, with no large
towns, and where the industry is mainly
agricultural, For many years the popu-
latiOn has been nearly stationary in num-
bers, but the wealth of the people has
been steadily increasing, and to this in
crease the railroads have no doubt largely
contributed perhaps it is not too much
to say that they have rendered it possible
There is not local traffic along the line of
road to enable the company on any posi-
BILE tariff TO maintain a tirst-clas5 road,
and its managers before and during the
receivership directed their energies to
making it link in through lines from
Boston and other New England towns to
Montreal, Detroit, Chicago, and other
points in the West. These efforts We're
successful, and the Central Vermont was
recognized by the Trunk lines as power
full rival for the traffic between the Mis-
sissippi valley and the seaboard, and was
allotted large percentages OF the bust
ness. But as the line was much less di-
rect than those of the Trunk line roads
and more time was required for the pas
sage of trains over it than between the
same points over the other lines, it was
compelled to. make concessions IN rates
to shippers, and the Trunk lines recog
nized tins necessity and allowed it a diff
ferential, as it is called; that is to say,
allowed it to make concessions on west
bound traffic up 10 an agreed point with
III